GDF Suez Signs China Deals for Gas Storage, Floating LNG Imports

By Tara Patel -
Apr 25, 2013

GDF Suez SA (GSZ), Europe’s biggest
utility by market value, agreed to study the development of six
natural gas storage sites in China in depleted underground
fields as well as a floating import facility.

The former French monopoly signed a technical service
agreement today with China National Petroleum Corp. to assess
the storage projects, which could be filled as early as this
year, according to a statement from GDF Suez.

GDF Suez will also provide China with its first floating
storage and regasification unit to be moored in Tianjin, the
utility said.

The deals were reached during a two-day visit by French
President Francois Hollande to China to meet with his
counterpart Xi Jinping. The two leaders signed a series of
accords calling for cooperation in civil aviation, nuclear
power, food safety and tourism, according to reports.

China’s gas market is “growing at a very fast pace,” GDF
Suez said. The market could double within five years as the
country seeks to replace coal with gas to lower pollution.

The gas storage facilities could have a total volume of 10
billion cubic meters, or the same at France’s entire storage
capacity, according to today’s statement. The project is part of
China’s plan to have 24 gas storage facilities to hold 30
billion cubic meters by 2017 from 3 billion cubic meters today.